The loan from the Department of Economic and Community Development will contribute to the company's $6.5 million expansion plan to consolidate its two separate Glastonbury manufacturing operations — at 25 Mill Street and 911 New London Turnpike — into a new facility at 81 National Drive.

"This is primarily to get ready for what's coming down in aerospace in 2014 and 2015," said Kevin Flanagan, vice president of the company and director of sales. "We have to be ready for the increased orders for all the commercial and military jet engines – when they ramp up in 2015, if we didn't have the building and new machine tools we'd miss it. That's what's driving this."

Flanagan currently employs 88 people at the second-generation family-owned business, and manufactures complex jet engine cases, assemblies, and ground turbine components to specific tolerances for aerospace companies.The expansion will also add 20 new jobs.

"These kinds of companies are really important contributors to the state economy," said Jim Watson, spokesman for DECD, which is issuing the loan. "Our competitive advantage is a strong supply chain, a strong base of aerospace companies. That's why these kinds of investments are important."

The loan will be issued at 2 percent for a term of 10 years and will help the company meet increasing work orders from Pratt and Whitney and General Electric.

"I would say that our backlog in new orders is up approximately 40 percent from this time last year just because of what's happening in the aerospace industry," Kevin Flanagan said.

If the company retains its 88 existing employees and adds 20 additional within two years, it will be eligible for $1.25 million in loan forgiveness.

In addition to hiring workers, Flanagan plans to use the loan to purchase $3.5 million in new equipment and machinery, and make improvements to the new building to accommodate that heavy machinery. The construction project at the new site will create 24 construction jobs and 29 support jobs.

Funding will be voted on during the July 26 State Bond Commission meeting

The company applied for the business loan in the spring of 2013.

"The aerospace sector is poised for significant growth over the next decade and Connecticut's aerospace industry is perfectly positioned to provide a large share of the components that will be needed," Malloy said in a statement.